How Trump’s triumph impacts InsurTech & UK FinTech investments drop 15% YoY

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Research highlight

UK FinTech investments dropped by 15% YoY as deals under $100m halved in Q3

Key UK FinTech investment stats in Q3 2024:

• UK FinTech investments dropped by 15% YoY

• Deals under $100m halved as investors focus on smaller deals

• Novatus Global Limited, an award-winning regulatory technology provider for the global financial sector, made itself known to the UK FinTech market with a Series A funding round of $40m

In the third quarter of 2024, the UK FinTech sector experienced a significant year-over-year drop in both deal volume and funding.

Q3 2024 closed with 69 deals, marking a steep 61% decline from the 176 deals recorded in Q3 2023 and a slight 3% decrease from the 71 deals seen in Q2 2024.

Total funding in Q3 2024 amounted to $1.9bn, representing a 15% drop from $2.2bn raised in Q3 2023 and a minor 1% decrease from the $1.92bn raised in Q2 2024.

If current trends continue, the projected deal count for 2024 would be 312 deals, a 61% decrease from the 798 transactions completed in 2023.

Total funding for 2024, would close at around $7.8bn, marking a 48% decline from the $14.9bn raised in 2023.

Funding from deals under $100m reached $680m in Q3 2024, down 48% from the $1.3bn recorded in Q3 2023 but showed a 32% increase over the $516m recorded in Q2 2024.

In Q3 2024, larger deals valued at $100m or more accounted for $1.2bn, a 32% drop from the $922m raised by such deals in Q3 2023 and a 13% decline from the $1.4bn seen in Q2 2024.

This decline in high-value transactions further signals a conservative stance among investors, as they navigate shifting market dynamics and weigh investment opportunities against broader economic risks.

Novatus Global Limited, an award-winning regulatory technology provider for the global financial sector, made itself known with a $40m investment from Silversmith Capital Partners, a Boston-based growth equity firm.

Founded in 2019 by industry experts, Novatus has quickly become a trusted partner to top banks, asset managers, and financial institutions, as demonstrated by its tripling revenue over the past year.

With this growth funding, Novatus aims to deepen its investment in the technology powering its flagship product, En:ACT, a fully scalable, cloud-native SaaS platform that supports clients in navigating complex, evolving compliance requirements.

The investment will fuel Novatus's efforts to expand globally while continuing to deliver innovative solutions that streamline regulatory reporting, compliance, and ESG requirements for its clients.

Weekly FinTech deal roundup

FinTech sector roars on with 25 powerful deals this week – A strong week for FinTech funding saw $898.125m raised over a period that was headlined by a mammoth $200m tranche from Armis. Read the full story here.

InsurTech news

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• Boosting transparency: a strategy to enhance AUM for fund managers - The global fund management industry is undergoing a transformative period as it faces increasing pressures to improve operational efficiency and deliver more transparent, accountable services. Read the full story here.

RegTech news

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• Boosting transparency: a strategy to enhance AUM for fund managers - The global fund management industry is undergoing a transformative period as it faces increasing pressures to improve operational efficiency and deliver more transparent, accountable services. Read the full story here.

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• Embed Security bags $6m in funding to enhance AI-driven cyber solutions - Embed Security, a cyber firm specialising in AI-driven threat analysis, has successfully raised $6m in early-stage funding.Read the full story here.
• AI-driven cybersecurity startup Corgea raises $2.6m in seed round - Corgea, a CyberTech specialising in AI-driven vulnerability detection and remediation, has closed a $2.6m seed funding round. Read the full story here.

ESG FinTech news

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• GaiaLens introduces revolutionary on-demand ESG reporting tool - GaiaLens, a leader in Sustainability Analytics, has officially unveiled its innovative on-demand sustainability reporting tool today. Read the full story here.
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Other FinTech news

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